Attachment Flashcards
What does attachment mean?
Attachment means that the security interest is enforceable.
What are the three requirements for attachment?
Remember VCR:
Value must be given by creditor
Contract, called security agreement or record, must evidence the secured transaction unless the secured party has taken possession of the collateral.
The record must (a) be authenticated by debtor (signed or electronically marked) AND (b) reasonably identify the collateral.
Rights in the collateral - debtor must have rights in the collateral.
What is an after-acquired collateral clause and are they enforceable?
It is like a floating lien, where the secured party takes a security interest in all the debtor’s inventory, whether now held or hereafter acquired.
It is enforceable.
